The University of Otago achieved the highest university operating surplus in the country last year, at $31.1 million, figures released this week by the Tertiary Education Commission (TEC) show.
Tertiary Education Minister Steven Joyce said the overall TEC figures, covering the years 2007-09, showed publicly-funded tertiary institutions were generally in strong financial positions.
Financial details showed the performance of tertiary education institutes improved markedly last year, with an overall surplus of 4.3% from a revenue base of about $4.2 billion - $2.1 billion of which is government funding.
Institutes of technology and polytechnics (ITPs) reported an average surplus of 6.3%, universities 3.4% and wananga 7% - all above the 3% TEC guideline.
The TEC figures showed Auckland achieved the second-largest net surplus among universities - $28.5 million, before any unusual and non-recurring items.
The Otago net surplus had dipped from $32.1 million in 2007 to $18.5 million in 2008 before largely recovering last year.
Many of the country's eight universities also followed the same pattern of recovery, with five achieving higher surpluses last year.
The University of Otago gained the second largest increase in government funding - up $29 million, to $248 million - between 2007 and 2009, and Auckland University gained $35 million, to $337 million.
Otago also achieved the second-highest growth in non-governmental income - up $38 million to $310 million last year.
Auckland University topped the list with $506 million (up $67 million).
Otago Polytechnic achieved a net operating surplus of $700,000 last year, up from a $100,000 surplus in 2007 and a $300,000 deficit in 2008.
Otago Polytechnic chief operating officer Philip Cullen said the Otago figures reflected a positive performance by the polytechnic under difficult circumstances.
"We're working very hard to improve the bottom line," he said.
Overall Government funding to ITPs had increased 11.1%, from $583 million to $648 million, during the period, the TEC report noted.
By contrast, Otago Polytechnic figures provided in the report suggest underlying government annual funding remained about $33 million over the three years, with funding from non-government sources up by $3 million to $20 million last year.
Mr Cullen noted that, despite the financial pressures, the polytechnic had also achieved high academic success, last year being rated by TEC as the best performing education institution in the country for tertiary degree completion rates - at 91%.
The University of Otago last year also achieved the best results among the country's universities for the number of students gaining qualifications and student retention, another TEC report showed.
Telford Rural Polytechnic had an $800,000 surplus last year, down from $2 million the previous year, and Aoraki Polytechnic achieved a $4.3 million surplus ($2.5 million previously).
